Supply Chain
We have formulated principles on this topic
As a trading and tourism company, we source products and services from a large number of suppliers and from different global supply chains. As we want to reduce the environmental and social impact of our actions wherever possible, we have
- formulated the principles of our business relationships in our guideline for sustainable business practices. Among other things, it includes the ban on forced labour, child labour and the protection of biodiversity.
- in our guidelines on issues such as child and forced labour or women in the supply chain we have defined a binding framework for business relationships with our partners.
- in our Declaration of Principles we committed ourselves to strengthening human and environmental rights preventing their violation, minimising them and taking remedial action. Our Group’s entities that fall under the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) have, each published their own Declaration of Principles.
With regard to the protection of human rights and environmental goods in the supply chain, we define our expectations towards suppliers in the Supplier Code of Conduct, which must be observed and complied with in business transactions with REWE Group companies. They should,
- not violate human rights-related obligations and ensure this in their own business area and pass on the obligations in the upstream supply chain in a binding manner.
- minimise the environmental impact of its business activities, actively implement measures for the promotion of environmental protection and accept and comply with all applicable local and internationally recognised environmental standards and laws.
How we identify and deal with risks
To address the impact of our business activities on people, animals and the environment, we follow our four-step management approach for more sustainable supply chains (see also graphic below).
As part of our LkSG 2023 project, the REWE Group has implemented a process for holistic and continuous risk management regarding human rights and environmental due diligence (see Declaration of Principles). In addition to risk analyses in the supply chains, preventive measures, and effectiveness checks, it comprises two further stages:
- Grievance mechanism: Employees and other potentially affected groups of people can use our digital grievance system to report violations of human rights and environmental concerns caused by REWE Group, its subsidiaries or our suppliers at any time. In the sense of an early warning system, both remedial and preventive measures are implemented on the basis of the complaints so that people and the environment can be protected, and violations can be prevented as effectively as possible.
- Dealing with offences: All reports are cleared up with the utmost confidentiality. Discussions with suppliers, affected parties and NGOs are part of this clarification process. Measures are developed and initiated based on the results.
We carry out analyses at the level of raw materials, commodity groups and individual products, topics or countries.
We derive measures and priorities.
Implementation takes place on three levels: internally (e.g. through supplier selection), in the supply chain (supplier assessment, sensibilisation, accountability and audits) as well as together with stakeholders.
We continuously evaluate all activities and check their effectiveness.
We carry out analyses at the level of raw materials, commodity groups and individual products, topics or countries.
We derive measures and priorities.
Implementation takes place on three levels: internally (e.g. through supplier selection), in the supply chain (supplier assessment, sensibilisation, accountability and audits) as well as together with stakeholders.
We continuously evaluate all activities and check their effectiveness.
The objectives we have set ourselves
We set ourselves objectives along the entire value chain. For example, we have made a commitment to scientifically based emissions reduction targets (see focus topic Climate Protection) and want to anchor more animal welfare in our private label supply chains, which include products of animal origin (see focus topic Animal Welfare). Concerning direct suppliers and production facilities in high-risk countries1, for our private label supply chains at REWE, PENNY and toom Baumarkt DIY store, we also want to
- fully integrate the strategic production sites and suppliers into a training programme (Capacity Building) by the end of 2030, and
- improve access to grievance mechanisms in relevant supply chains by the end of 2025.
We have achieved our objective of fully integrating all relevant food and non-food suppliers of RFE (REWE Far East) into an environmental programme by 2030.
Focus on raw materials and services
According to our analyses, the following raw materials food, non-food, and services have the highest environmental and social impact:
- Food: Fruit and vegetables, palm oil, cocoa, juices, coffee, tea, fish, meat, soy in animal feed
- Non-Food: Cotton and textiles, wood and paper, peat-free soils, natural stones, Nordmann firs
- Services: Travelling
Seven exemplary supply chains,
the challenges and our approach*
In the following, we present seven examples of supply chains from our focus raw materials and focus services and the approach we want to take to counter ecological and social impacts.
